AUSTIN -- Homeowners from the Hills at Rivermist subdivision in San Antonio told lawmakers they and other Texas home-buyers need protection from home builders.
They say the re-sale value of their property is badly damaged, even though their homes are fine. They're considering suing the builder to make up the difference.
But when Jim Coultress and many of his neighbors bought their new homes they agreed not to sue.
Instead, they promised to use private arbitration to settle future any disputes with the homebuilder.
”I, of course, signed the paper and I don’t think I understood the full ramifications,” Coultress said.
And he was not alone.
“I mean, when they throw a stack of papers in front of you while you’re closing on your house, its about six inches thick and you have to sign all of them, after a while your brain goes numb and you don’t know what you’re doing,” said Bob Lisherness, homeowner.
They and other homeowners asked the state House Judiciary Committee to stop homebuilders from requiring owners to agree to arbitration at the time of sale. However, homeowners who expected an immediate reaction from lawmakers, left disappointed. No change in law can occur until the Legislature reconvenes in 2011.
“There wont be any resolution, there wont be any law created this year because by constitution we dont meet until next January, but youll see a lot of homework assignments, a lot of studying,” said Rep. Todd Hunter, R-Corpus Christi, who chairs the committee.
Scott Norman, Executive Director of the Texas Association of Builders believes prospective homeowners should study-up, too; he contends buyers have options when it comes to arbitration.
”It’s entered into willingly by the parties to the contract not all builders in Texas use it: some do, some do not,” he explained.
